In the forex market, all spot trades must be settled in two business days. Settlement implies physical delivery of currencies.

Overnight Interest | Forex Rollover Rates and Policy | Swap Rates

However, physical delivery does not occur in margin trading. Therefore, all open positions must be closed every day at the end-of-day set at This pushes out the settlement by another trading day. This strategy, called a rollover, is created through a swap agreement and it comes at a cost or gain to the trader.

In practice, Trading Point does not close and reopen open positions. Every currency trade involves borrowing one currency to buy another and interest is paid on the borrowed currency and earned on the purchased. If you have a buy position of 1 lot in USDJPY at Consequently, if you leave your position open you gain USD 6.

This amount is credited to your account. This is equivalent to 0. Similarly, if you have a short position in USDJPY, you lose USD 6.

Rollover interest can thus provide an added stream of profit or loss to a client. Any positions that are open at A position opened at A credit or debit for each position open at As the markets are closed on Saturdays and Sundays there is no rollover on these days but the banks still calculate interest on any position held over the weekend. To account for this procedure in the forex market is we apply 3 days of rollover on Wednesdays.

Forex, Commodities, Options and CFDs OTC Trading are leveraged products that carry a substantial risk of loss up to your invested capital and may not be suitable for everyone. Please ensure that you fully understand the risks involved and do not invest money you cannot afford to lose. Please refer to our full Risk Disclosure. Trading Point does not provide services for citizens of the United States of America.

This page is part of archived content and may be outdated. Explaining Rollover In the forex market, all spot trades must be settled in two business days. How to calculate Rollover Every currency trade involves borrowing one currency to buy another and interest is paid on the borrowed currency and earned on the purchased.

When is rollover booked?

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Weekends As the markets are closed on Saturdays and Sundays there is no rollover on these days but the banks still calculate interest on any position held over the weekend. Copyright Trading Point Holdings Ltd. Privacy Policy Risk Warning: